MagIndustries Corp.
TSX : MAA

MagIndustries Corp.

June 26, 2015 15:48 ET

MagIndustries Files Notice of Change of Auditor Reporting Package on SEDAR

TORONTO, ONTARIO--(Marketwired - June 26, 2015) - MagIndustries Corp. (TSX:MAA) (the "Company" or "MagIndustries") announced that it has today filed its change of auditor reporting package on www.sedar.com in connection with the resignation of Ernst & Young LLP (the "Former Auditors") as the Company's auditors announced on June 17, 2015. The reporting package sets forth four "reportable events", as defined in National Instrument 51-102 - Continuous Disclosure Obligations ("NI 51-102"). These events are as follows: (i) certain whistleblower complaints received by the Company were not brought to the attention of the Former Auditors in the course of their audit. The Former Auditors became aware of such allegations as a result of the announcement of the Company being served with a search warrant by the RCMP. The Company's board of directors and its advisors has discussed the matter with the Former Auditors; (ii) those matters referred to in the Company's press release dated June 16, 2015 concerning the interim results of the special committee of the Company's board of directors. The issues highlighted in such press release were discussed with the Former Auditor on numerous occasions. However, since a final report has not yet been provided resolution of these issues has not yet been settled upon; (iii) concerns relating to the effectiveness of the Company's control environment were raised by the Former Auditors resulting principally from the items raised in the previous item. The Company's board of directors, and its advisors have discussed the matter with the Former Auditors; (iv) concerns as to the ability of the Company on a timely basis to put in place sufficient corrective measures and to provide sufficient reliable evidence required in order for the Former Auditors to perform an audit of the consolidated financial statements for the year ended December 31, 2014. The Company's board of directors and its advisors has discussed the matter with the Former Auditors.

All procedures have been followed under NI 51-102 regarding the change of auditor and, as required, a Notice of Change of Auditor, together with the required letter from the Former Auditors, have been filed via SEDAR with each securities commission in each province that the Company is a reporting issuer.

About MagIndustries Corp.

MagIndustries is a Canadian company whose common shares are listed on the Toronto Stock Exchange and trade in Canadian currency under the symbol "MAA". The Company has 755,942,674 common shares outstanding. MagIndustries is focused on the development of its potash assets in the Republic of Congo. More information on the Company is available on its website, www.magindustries.com

Forward Looking Information

Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, country policy and political risks, currency exchange risk, changing market conditions, force majeure events, and other risks detailed from time-to-time in the Company's ongoing filings. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under the Company's continuous disclosure obligations.

Cusip: 55917T 102

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